x
Gold stocks are showing short-term consolidation, but should they break resistance, another bullish leg could be sustained, pushing the VanEck Vectors Junior Gold Miners ETF (GDXJ) up to 60% higher in a few months, said Chris Vermeulen, chief market strategist of Technical Traders.
“If we were to extend these [price levels to this year’s lows], which is where this first major bull flag pole ran to, and now we’ve got a multi-month consolidation, it actually gives us the full-measured move of the upside target of the GDXJ, reaching potentially all the way to $98,” Vermeulen said.
The GDXJ last traded at $58.18.
he gold bullion is seeing similar price action, and chart patterns point to a $2,100 to $2,300 by year-end.
“Gold is continuing to hold its value because we really are in the perfect storm for precious metals. The more issues we have with the economy, the more bullish it actually is for metals because of stimulus and currency issues and all those things,” he said.
The key market risk remains COVID-19, Vermeulen said.
“It’s really going to come into COVID. If the second wave of COVID really wreaks havoc and locks down North America and Canada, and the U.S. gets really strict on their rules, that’s going to put us into a death spiral,” he said.
By David Lin
For Kitco News
